"A habit that leads to profit" (Column currently published on Toyokeizai ONLINE)
Good morning, this is Matsushita.
Investing, in and of itself, is a habit.
Because it is an act that you continue to gain profits from every day, every year, for years,
for decades.
There are many people who do not understand this, so
only a handful of people in the market can sustain profits for decades.
Even people who earned profits for a while will disappear when you notice.
Because investing is a habit,
there are many habits that lead to profits.
The habit I will explain today is,
the habit of verification.
While you are watching charts every day,
you may come up with some idea like, “this pattern might lead to profit.”
At that moment, most people try that idea in actual trading.
This will not lead to profits, even though the idea is good.
If the idea immediately yields profit,
investing would be much easier, but it isn’t.
The truth is, investing is not so forgiving that a sudden idea turns into profit instantly.
And it’s a waste if not handled properly.
The idea is a “raw gem of profit.”
If you polish it well, it can become a profitable idea,
but thanks to your actions, it always vanishes.
What you should do when you think of an idea is not to try it in actual trading, but to “verify.”
In other words, go back through historical charts
and look for that pattern.
Then you’ll know whether that pattern truly yields profits or if it was just a misconception.
Even if at that moment it was a misconception,
you will learn how to adjust so that the idea can lead to profit,
and you will come up with ideas for the next verification.
In this way, verification leads to further verification
and the process of verification continues endlessly.
If you continue this kind of habit for several years,
this investor will start generating profits.
They will become a very strong investor.
One piece of evidence is the Makoto Investment School
Trading Study Group,
and the members of this group are continuing verification every day.
Among the five current participants,
four have already started making profits.
This ratio is the exact opposite of the proportion of investors who incur losses in the market.
The reason one investor is not yet profitable is that
they joined only this July.
If this person continues this habit,
they will become profitable in a few years.
The raw gems of profit have already begun verification.
Profiting investors verify all year round, but
unprofitable investors trade all year round.
This difference will create a surprising gap in future assets.
One of the habits to profit in investing is
the habit of verification.
Realize that the difference in habits leads to different results
and review your own habits.
Habits, once ingrained, are powerful.
Because they are habits after all.
Doesn’t the habit of making profits excite you?
Please acquire it.